Farmers weren’t too surprised to see the changes made to the agriculture sector in Wednesday’s budget. Funding stayed around the same, but some exemptions like ones for fuel were changed.

The provincial budget removed the provincial sales tax exemption for bulk fuel purchases of gasoline. It also changed the PST exemption on diesel fuel from 100 per cent to 80 per cent, which makes for a tax of about three cents per litre.

Dale Heenan, a grain farmer from south of Regina, said producers, himself included, could see the removal of the fuel tax exemption for bulk fuel coming.

“We can live with that because we realize that they’re probably correct. That part’s fair, I can’t complain much on that. We’ve had a break for a while,” he said.

The changes to the diesel fuel tax exemption Heenan said will affect his farming operation.

“It is a fairly big hit. It wouldn’t hurt so much if they actually spent that money on the roads as opposed to general revenue,” Heenan said.

Todd Lewis, president of the Agricultural Producers Association of Saskatchewan, sees the changes to the fuel tax exemption are part of what producers need to do to help the province through these hard times.

“I don’t think it was unexpected. I think farmers and ranchers have recognized that it was going to be changes in it and I think the changes are something that most people were expecting and I think it’s manageable,” he said.

Agriculture Minister Lyle Stewart said the three-cent reduction in the diesel fuel rebate has been deemed to be the portion of fuel used by producers when they are driving on the roads.

“Its reasonable to pay the fuel tax on the portion of diesel fuel we use going down the road because there’s wear and tear on the road system and all of those things. The stakeholders I’ve talked to, everybody agrees, nobody wants to pay more tax, but they seem to be fairly accepting of this,” he said.

The government said the changes were made due to the changes in farm operations, saying most farm operations are now using only diesel for on- and off-farm business.

“On the diesel, going from 100 per cent to 80 per cent, is similar to Alberta and B.C. now, provinces we still need to compete with. It’s a major input into our agriculture sector and other sectors so that will continue,” said Finance Minister Kevin Doherty.

Tax exemptions for purchases of farm machinery, fertilizer, pesticide and seed however were all kept in this years budget. Doherty said this was due to talking with the agriculture industry and seeing how much of a detrimental affect it would have on the rural economy.

“It is potentially a substantial amount of money, no other province in Canada taxes those inputs … I can’t imagine what would happen to our economy in rural Saskatchewan, if we were, the home of agriculture in Canada, the first government in Canada to tax those implements for agriculture,” he said.

The 2017-18 provincial budget funds $388.6 million for agriculture with $264.1 million provided for business risk management programs — an increase of almost four per cent.

There will be $71.2 million provided for for the federal-provincial Growing Forward 2 agreement. The budget also provides $26.8 million for agriculture research. There is $172.2 million being provided for Crop Insurance premiums and program delivery.

The Saskatchewan Pastures Program has been ended in this years budget and will be phased out over three years. The pastures program includes 51 pastures incorporating 780,000 acres of land.

There will be consultations made for the future management of the land with the public, stakeholders, First Nations and Metis communities. An online survey will be available online at www.saskatchewan.ca/pastures from March 27 to May 8.

The Saskatchewan Grain Car Corporation was also ended in the budget with the grain cars to be sold.

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